New laws in wage rort crackdown
The Federal Government is cracking down on the kind of wage fraud that has seen 7-Eleven workers systemically ripped-off.
The 7-Eleven convenience store chain has been the subject of enormous media attention and public outrage for the underpayment of workers at many franchises.
The Coalition’s latest election pledge includes a $20 million funding injection and enhanced powers for the workplace watchdog.
It will be coupled with a ten-fold increase in fines for employers that break the rules.
Employment Minister Michaelia Cash says the new policies will send a warning to employers.
“Serious contraventions” of wage laws will cost ten times more than the current maximum penalty of $10,800 for an individual and $54,000 for a corporation, Fairfax Media claims.
Big franchises also face new employment laws, with franchisors to be held accountable for any wage abuse in the chain.
“The widespread non-compliance within the 7-Eleven chain is perhaps the most well-known example, however unfortunately is by no means the only one,” Senator Cash said in a statement.
But some measures are specifically targeted at 7-Eleven, which has been criticised again for removing independent reviewers investigating its widespread wage abuses.
“Given 7-Eleven’s failings to address the significant breaches of workplace laws, Prof Allan Fels AO and Dr David Cousins will be engaged to work with the Fair Work Ombudsman’s Migrant Workers Taskforce,” Senator Cash said.
“The Taskforce, with advice from Professor Fels and Dr Cousins, will provide oversight and advice to the Fair Work Ombudsman to ensure that 7-Eleven rectifies the serious breaches committed by its franchise network and to ensure 7-Eleven takes responsibility for addressing its systematic failing to provide minimum entitlements to 7-Eleven franchise employees.”